Activision, Inc. has announced preliminary financial results for the third quarter of fiscal year 2007 and additional preliminary financial results for the second quarter of fiscal 2007. For the fiscal third quarter ended December 31, 2006, the company expects to report record nett revenues of US$822.8 million, as compared to $816.2 million for the equivalent period last fiscal year. The figure is also up on the company's prior outlook of $600.0 million.

Activision expects the third quarter will be the largest and most profitable in its history, due to better-than-expected consumer response to its holiday slate and catalogue titles, as well as the strength of its distribution business.

Fourth quarter results are expected to be significantly impacted by higher legal expenses relating primarily to its internal review of historical stock option practices, including expenses relating to the previously announced informal SEC inquiry and derivative litigation, and its decision to move the release of Enemy Territory: Quake Wars into fiscal year 2008.

For fiscal year 2007, Activision is increasing its nett revenue outlook to US$1.37 billion, as compared to its prior outlook of $1.15 billion, based on better-than-expected nett revenue performance in the third quarter.

Fiscal year 2008 nett revenue is expected to exceed $1.6 billion.